The layout suggest is very good. I made some minor changes.

1. Replaced the loveseat with a large lounge chair/recliner
2. Added a tall tree to visually divide the two areas
3. Replaced the end table with a round drum table and lamp
4. Extended the console table behind the sofa, which could also be the location for a sideboard because the spacing is tight in the dining area.
5. Added a very narror sideboard to the back wall. Make sure you have 3 ft from the edge of the table to the front of the sideboard.

Will you have a TV in this space?

Thank you, Beverly! I really like the idea of adding a sideboard behind the couch. We have small children and this will be our main living / TV space. Could a love seat or an additional couch work? Would love more “lounge” furniture for our family.

I don’t personally love artificial trees. What other ideas do you have that could help divide the rooms? I’ve seen others with the arched mirror “leaning” against the wall. Could that work?

We will be putting the tv next to the fireplace in the built in area.

No leaning mirror with toddlers!!!!!! Besides you always have to check on what it's reflecting in the mirror.

No one wants a tree that looks like this anymore. They never looked real. But the quality of the trees have improved.

Primary use for family is lounging for TV and other stuff. I'd swap dining and living arrangements. A deep seat couch with a chaise on one or both ends if long with a couple large ottomans to also act as tables. No coffee table. TV on the wall. That wall is enough for a 135" we'll eventually get to. You can see it from the kitchen. Add a chair like an Arhaus Walsh if you want.